Microsoft Lesson For Indian Cos

What happened with Cyrus Mystry in Tata seems to have happened with Vishal Sikka in Infosys. The letter sent by founders to Infosys board raising governance concerns has given rise to nagging suspicion that remote controlling of a company by former promoters may be an emerging trend in Indian corporate that are restructuring and reinventing themselves to come to terms with the new business realities.

“I fail to understand what the hullabaloo is all about,” says Sanchit Vir Gogia, Chief Analyst, Founder & CEO, Greyhound.

“In all fairness, there is misreporting about Vishal’s compensation – per latest SEC filings while $906,923 is base salary, $6,488,727 is based on performance. This is standard industry practice and not out of the ordinary and hence deems no criticism of any sort,” he pointed out.

The founders letter to the board at Infosys points to several issues. With the letter that has been sent out with reported governance issues, while there may be some truth in what has been reported, it is critical to note that the governance issues haven’t been proved (yet) and it will be unfair to conclude on the basis of the letter that has been sent out, says Gogia.

Any organisation will have difference of issues within its current working members, leave alone with founders and the board when the former are no longer at the helm.

“Separating ownership from control is one of the long standing battles for founders and the latter raising concerns post stepping down from the helm is both correct and expected. In fact, the new management has a lot to gain from the experiences and constructive criticism by the founders. We witnessed a similar scenario at Tata Sons only recently. In a nutshell, such changes and counter actions by investors are a standard practice globally and such instances shouldn’t be blown out of proportion,” said Gogia.

[Source]

Copyright © 2017 Greyhound Knowledge Group. All rights reserved. You may share this research note using the options made available. Please don’t copy this research note (complete or parts) and distribute over the web and emails. Connect with us if you need clarifications.


Have a question on this or other technology and innovation topics? Wish to understand what this means for your business? Click here to engage with a Greyhound Analyst.

Like this insight? Sign up for our newsletter to get our latest insights.

Wish to read more such Insights That Inspire? Access scores of other Free, Freemium and Premium Insights from the menu above.


Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Knowledge Group, a Global Strategy & Transformation Research, Advisory & Consulting Firm. To read more about him, click here.


Note for IT Decision Makers – Join Our Exclusive Community! Greyhound Research values your opinion and invites IT Decision Makers and Business Leaders involved in IT projects to join our exclusive, invite-only Greyhound Golden Gate (GQube) Councils. If your project is exclusive and we have your permission, we will write a research note about you and share it with the larger community. Over and beyond, this also gives you access to some of our thought-leading research and analysts. Please write to us on connect@greyhoundgroup.com and we’ll take it further from there!

Note for IT Vendors, Telecom Operators and Channel Partners – Did you see our Research Agenda? We have organised all of our insights in a way that allows you to better filter and read what works best for you. Please write to us on connect@greyhoundgroup.com and we’ll gladly share a copy of the research agenda with you.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s